Selling APA puts for income.
APA Corp. (APA) — Formerly Apache Energy — is trading sharply higher today after a brief pullback.
Energy stocks continue to be a bright spot in today’s market, and the recent volatility gives us a great opportunity to collect extra income from shares that are in a relatively steady uptrend.
By selling the March $30 puts near $1.95, we’re able to collect an annualized yield near 46%, while also giving us roughly $2.50 per share in cushion between the current market price for APA and our strike price.
- Sell (to open) 2 APA March 18th $30 puts
- Limit: $1.95 or more
- The new position will represent roughly 6.3% of our model.
~~~~~~~~ - 13:43 Executed
- Sold 2 APA Mar 18th $30 Puts @ $1.95